Employer

EXHIBIT E

SCHEDULE RATING SHEET

FOR USE IN SCHEDULE RATING RISKS INVOLVING MORE THAN ONE CLASSIFICATION

Business Address

Location Inspected

A. B. C. Mfg. Co.
Boyd Bldg Pottersville
Tenth St.

816

Number

42

Number

Street

Pure Premium Formulae

City or Town

"

City or Town

State

Percent Pure Premiums

N

EXPLANATORY

Exhibit A. This exhibit shows the first page of the Industrial Compensation Rating Schedule Inspection Report. The inspector enters on this page the name of the risk, its location, its raw material, its products and the process which is in use.

Exhibit B. This is the last page of the inspection report. The inspector completes this page to show the departments, the operations carried on in these departments, their location and the number of employees in each.

By referring to Exhibit A and Exhibit B, the rater is, in most instances, able to determine the classification or classifications under which the risk falls. In the example shown, it is seen that condensed milk and butter are manufactured, and that bottling of soft drinks is done. It may also be noted that the labor is interchangeable between departments one and two, but not between these departments and department three. The manufacture of condensed milk and the manufacture of butter fall under manual classification 2065 (milk products manufacturing), and the work of bottling falls under manual classification 2162 (bottling, refrigeration-absorption process).

Exhibit C.-This is the second page of the report. In the example, it will be seen that none of the formulæ has been completed. This is because the rating formulæ on this page are used only when the manufacturing operations of the entire plant fall under a single classification. As this example embraces two classifications, a separate rating sheet is used. However, the inspector completes, with the exception of the formulæ, all items which refer to elevators (170), power transmission (320), safety organization (450) and first aid and hospital (460).

Exhibit D. This is the general machine report, and is page 3 of the inspection report. Here, the inspector lists in the first six columns the building, floor, department, name, statistical code number and number of machines. In the various other columns, as shown in the exhibit, the number of machines which have been guarded according to the standards of the Industrial Compensation Rating Schedule is indicated.

Specific weights are assigned to the point of operation of different machines in the schedule, and the rater enters these weights in the columns immediately before and after the column marked "Number of Points of Operation Guarded." The rater, by multiplying the total points of operation by the "unguarded weights," obtains the total unguarded weight for each machine, and, by multiplying the total points of operation by the "weight eliminated by guarding," obtains the total weight eliminated by guarding. These products, respectively marked A and B at the bottom of the page, are used in rating the risk.

Exhibit E. This exhibit is the rating sheet used for risks which fall under two or more classifications. The rater obtains the values of a and b from Exhibit C, and the values of N, DM, MP, A, B, Z and PO from Exhibit D. These values are entered in their proper places in the formulæ shown in the first column. captioned "Calculation of Risk Indices." The credits for safety organization, loss cost test, first aid and hospital are also entered after items 450, 455 and 460 respectively. The formulæ in the first column are then applied, and the resulting values are entered in the columns marked "Calculation of Pure Premium," using the formulæ in the column marked "Pure Premium Formula" as a guide to the proper entry of these values.

Values for E, t, T, D, M and P are obtained by referring to the "Table of Pure Premium and Schedule Rating Factors" which is printed in the Industrial Compensation Rating Schedule. These formulæ are then applied, and the results entered in the column captioned "Per Cent Pure Premium." These results are then added to the Residue (R) value which is obtained from the "Table of Pure Premium and Schedule Rating Factors.' In the example shown, the totals amount to 93.7 and 94.2 (columns I and II). From these values, a 1 per cent credit for first aid is deducted, and the Final Per cent Pure Premiums are 92.7 per cent for classification 2065 and 93.2 per cent for classification 2162. An average credit is found by multiplying the Per Cent Pure Premium for each classification by the number of employees in that classification. This operation is shown in the square immediately below the total credits for items 450 and 460, and the result in the example is 9277.5 This amount, divided by

the total number of employees, results in the schedule modification to be used, 92.8 per cent. This modification, applied to the Indiana manual rates for classification 2065 ($1.40) and classification 2162 ($2.04), results in the schedule rates to be used in obtaining the correct premium for the risk (classification 2065, $1.30 and classification 2162, $1.89).